U.S. Treasury Secretary Scott Bessent stated that China will use its influence in Iran to help reopen the Strait of Hormuz, which has been blockaded by Iran since early March in response to U.S. and Israeli airstrikes that killed several Iranian leaders, including Ayatollah Ali Khamenei [1]. The blockade has resulted in the largest oil supply disruption in history, as the strait previously accounted for the transit of 20% of the world's crude oil [1]. Bessent emphasized that China, as the world's largest oil importer—with over half of its crude coming from the Middle East and about 10% from Iran in 2024—has a significant interest in reopening the strait [1]. Nearly all of Iran's crude oil exports are directed to China, further underscoring Beijing's stake in resolving the crisis [1].
During a two-day summit in Beijing, President Donald Trump and President Xi Jinping agreed that the Strait of Hormuz must remain open to support the free flow of energy, according to a White House official [1]. President Xi also expressed China's opposition to the militarization of the strait and any efforts to impose a toll for its use [1]. However, Chinese state media did not specifically mention Hormuz in their coverage of the summit, only noting that the leaders discussed major international and regional issues, including the Middle East situation [1].
The U.S. has responded to the blockade by imposing its own blockade against Iranian ports, aiming to pressure Tehran into an agreement. No oil has been loaded at Iran's main export terminal, Kharg Island, in the past three days, and satellite photos indicate that Iran's storage tanks are full, forcing the country to begin shutting down production [1]. Bessent noted that "none of the ships are getting out, none are coming in, so they're not able to store oil on the water" [1].
In light of the supply disruption, China is reportedly interested in purchasing more U.S. energy, and other nations are also seeking more stable sources of energy [1]. Tehran's claim of control over the strait and its reported attempt to implement a toll system for passage remain key sticking points in ongoing, but stalled, peace talks with the U.S. [1].
CONCLUSION
The blockade of the Strait of Hormuz has triggered a historic disruption in global oil supply, with China positioned to play a crucial diplomatic role due to its energy interests. Market uncertainty remains high as negotiations continue, and the search for alternative energy sources intensifies among major importers.